(Re)Insurance Captives, Efficiency and Moral Hazard PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download (Re)Insurance Captives, Efficiency and Moral Hazard PDF full book. Access full book title (Re)Insurance Captives, Efficiency and Moral Hazard by Wim Weterings. Download full books in PDF and EPUB format.
Author: Wim Weterings
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
Get Book Here
Book Description
Captive insurance companies are 'in-house' (re)insurance companies formed with the specific objective of insuring the risks of their parent company and/or its affiliated companies. This alternative form of risk management is potentially or in fact an efficient means through which large listed or other companies or a group of companies can protect themselves financially. In the process, the parent company has more control over how risks are insured and claims are managed. The parent company also has more insight into and is able to exercise more influence on the behaviour of the insured companies and their affiliates and therefore on the insured risks, as a result of which moral hazard is lower. Whereas the popularity of insurance captives has increased in the past few years, there is still a distinct lack of clarity regarding the precise significance of an insurance captive, the advantages and disadvantages thereof, and the effects for risk management and risk financing. This contribution is intended to provide more clarity and to demonstrate that under certain circumstances an insurance captive can have important efficiency effects and, among other things, a positive effect on moral hazard. Insurance law and regulatory legislation, to which captives are also subject, also play an important role in the mitigation of moral hazard.
Author: Wim Weterings
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
Get Book Here
Book Description
Captive insurance companies are 'in-house' (re)insurance companies formed with the specific objective of insuring the risks of their parent company and/or its affiliated companies. This alternative form of risk management is potentially or in fact an efficient means through which large listed or other companies or a group of companies can protect themselves financially. In the process, the parent company has more control over how risks are insured and claims are managed. The parent company also has more insight into and is able to exercise more influence on the behaviour of the insured companies and their affiliates and therefore on the insured risks, as a result of which moral hazard is lower. Whereas the popularity of insurance captives has increased in the past few years, there is still a distinct lack of clarity regarding the precise significance of an insurance captive, the advantages and disadvantages thereof, and the effects for risk management and risk financing. This contribution is intended to provide more clarity and to demonstrate that under certain circumstances an insurance captive can have important efficiency effects and, among other things, a positive effect on moral hazard. Insurance law and regulatory legislation, to which captives are also subject, also play an important role in the mitigation of moral hazard.
Author: David M. Dror
Publisher: World Bank Publications
ISBN: 9780821350416
Category : Business & Economics
Languages : en
Pages : 548
Get Book Here
Book Description
Annotation This volume views community-based microinsurance as an incremental first step to improved financial protection and better access to health services for the poor. While community-based financing can be structured in various ways, this volume focuses on reinsurance as a mechanism for improving micro-level health insurance units. It outlines strategies and policies that can be applied by countries and donors to improve access to health care services.
Author: Matthew Queen
Publisher:
ISBN: 9781641053679
Category : Business & Economics
Languages : en
Pages : 0
Get Book Here
Book Description
Insurance is a sophisticated financial vehicle that can be best understood through the lens of risk management. Experiencing dramatic growth, captive insurance is owned and controlled by its insureds, pooling the risks of its owners. Captive insurance provides businesses with unmatched flexibility regarding coverage, claims, premium, and control, while also offering advantages such as lucrative dividends and innovative financing techniques. This state-of-the-art guide traces the development of small captive insurance and addresses how to set up and properly manage a captive. Modern Captive Insurance: A Legal Guide to Formation, Operation, and Exit Strategies, begins with an overview of what captive insurance is and detail the advantages in setting up a captive for a range of different business situations. Chapters explain how to incorporate and start up a new captive insurance program, including basic terminology and the roles different professionals play in running captive programs. Captive insurance is an intricate yet effective risk management strategy. For guidance in properly establishing a captive, the authors address critical issues evaluated by the IRS, such as risk shifting and distribution, and explore ethical considerations arising out of off-shore captive management, such as how to identify money laundering red flags and how to properly manage the investments of reserves. Modern Captive Insurance takes an in-depth look at the topics and issues that are common in insurance and in businesses, but are often handled differently for captives, such as: Financial statements, investments, and financial ratings Policy drafting and coverage Risk pools and structuring the pooling arrangement to be valid Federal, state and local taxation Tax-exempt organizations Risk retention groups (RRP) Reinsurance, and more Table of Contents Chapter 1: Captive Company Formation Chapter 2: Captives and Capitalists Chapter 3: Risk Pools Chapter 4: Financial Statements, Investments, and Financial Ratings Chapter 5: Policy Drafting and Coverage Chapter 6: Underwriting and Claims Reserving Chapter 7: Federal Income Tax and Captives Chapter 8: State and Local Captive Insurance Issues Chapter 9: Tax-Exempt Organizations and Captive Insurance Chapter 10: Risk Retention Groups and How They Work Chapter 11: Reinsurance Chapter 12: Workers' Compensation and the Grand Bargain Chapter 13: Employee Benefits Conclusion Table of Cases and Index
Author: Masahiko Aoki
Publisher: Sage Publications (CA)
ISBN:
Category : Business & Economics
Languages : en
Pages : 376
Get Book Here
Book Description
Leading experts on the theory of the firm advance a new approach to understanding the nature of the firm, and open up the prospect of a new interdisciplinary "science of organization".
Author: Paul K. Freeman
Publisher: Springer Science & Business Media
ISBN: 9401153604
Category : Business & Economics
Languages : en
Pages : 124
Get Book Here
Book Description
Can insurance be used as a means to obtain compliance with environmental policy? Answering this question requires examination of a broad mosaic of academic issues, including current systems available for providing compensation and deterrence, use of contracts (including insurance) as substitutes for tort law, limitations of regulatory policy-making by government agencies, pre-conditions for creation of insurance products, and market mechanisms necessary for insurance to be purchased or sold. The purpose of Managing Environmental Risk Through Insurance is to highlight the potential role that insurance and performance standards can play in managing environmental risk. Insurance can play a significant role in dealing with one of the most problematic issues facing society today - how to compensate for environmental exposures. This book analyzes the ability of insurance to play a role in managing environmental risk. It begins by outlining the role insurance plays in society in contrast to other societal tools for addressing risk: government benefit programs and imposition of involuntary liability using the court system. By so doing, the book describes the comparative advantages of insurance. The book then analyzes the insurability of the risks. Finally, the book applies the insurability analysis to three concrete environmental examples.
Author: J. François Outreville
Publisher: Springer Science & Business Media
ISBN: 1461561876
Category : Business & Economics
Languages : en
Pages : 342
Get Book Here
Book Description
Insurance is a concept, a technique, and an economic institution. It is a major tool of risk management, and plays an important role in the economic, social, and political life of all countries. Economic growth throughout the world has even expanded the role of insurance. Theory and Practice of Insurance aims to describe the significance of insurance institutions, the reasons they exist and how they function. The author emphasizes fundamental principles in risk and insurance, using an international frame of reference. This volume begins with an introduction to the concept of risk, then proceeds to cover insurance and its relationship to the economy; the principles of risk management and insurance; and the characteristics and performance of insurance companies.
Author: Véronique Bruggeman
Publisher: Kluwer Law International B.V.
ISBN: 9041132635
Category : Law
Languages : en
Pages : 650
Get Book Here
Book Description
This book shows that amelioration of the current compensation solutions for disaster victims is indeed a possibility. In a heated yet often poorly informed debate, it offers clarity and insights regarding the financial compensation for victims of catastrophes which, in addition to raising academic interest, are certain to help build a framework for future policymakers and lawmakers faced with shaping compensation programmes for catastrophe victims.
Author: Felix Hufeld
Publisher: Oxford University Press
ISBN: 0198788819
Category : Business & Economics
Languages : en
Pages : 247
Get Book Here
Book Description
The book brings together academics, regulators, and industry experts to provide a multifaceted array of research and perspectives on insurance, its role and functioning, and the potential systemic risk it could create.
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
ISBN:
Category :
Languages : en
Pages : 34
Get Book Here
Book Description
The insurance sector in Luxembourg is very large and serves as a European hub, specifically in the non-life (re)insurance sector and in unit-linked life insurance. Sector assets equaled EUR 289bn in June 2023, corresponding to 372 percent of GDP, significantly higher than in other European peers, Luxembourg insurance business is conducted mainly cross-border, both in the life and the non-life sector. The sector’s international role has been strengthened further after the Brexit vote when several U.K. insurers resettled to Luxembourg to continue cross-border business in the EEA through the passporting system. Business underwritten for domestic risks represents only 6 percent of the sector’s total technical provisions. Both the life and the non-life sector have undergone some consolidation recently, and most Luxembourgish insurers are subsidiaries of foreign groups.
Author: Marcelo G. Cruz
Publisher: John Wiley & Sons
ISBN: 1118118391
Category : Mathematics
Languages : en
Pages : 939
Get Book Here
Book Description
A one-stop guide for the theories, applications, and statistical methodologies essential to operational risk Providing a complete overview of operational risk modeling and relevant insurance analytics, Fundamental Aspects of Operational Risk and Insurance Analytics: A Handbook of Operational Risk offers a systematic approach that covers the wide range of topics in this area. Written by a team of leading experts in the field, the handbook presents detailed coverage of the theories, applications, and models inherent in any discussion of the fundamentals of operational risk, with a primary focus on Basel II/III regulation, modeling dependence, estimation of risk models, and modeling the data elements. Fundamental Aspects of Operational Risk and Insurance Analytics: A Handbook of Operational Risk begins with coverage on the four data elements used in operational risk framework as well as processing risk taxonomy. The book then goes further in-depth into the key topics in operational risk measurement and insurance, for example diverse methods to estimate frequency and severity models. Finally, the book ends with sections on specific topics, such as scenario analysis; multifactor modeling; and dependence modeling. A unique companion with Advances in Heavy Tailed Risk Modeling: A Handbook of Operational Risk, the handbook also features: Discussions on internal loss data and key risk indicators, which are both fundamental for developing a risk-sensitive framework Guidelines for how operational risk can be inserted into a firm’s strategic decisions A model for stress tests of operational risk under the United States Comprehensive Capital Analysis and Review (CCAR) program A valuable reference for financial engineers, quantitative analysts, risk managers, and large-scale consultancy groups advising banks on their internal systems, the handbook is also useful for academics teaching postgraduate courses on the methodology of operational risk.
